The World After QE2

Despite investors' worries, the markets and economy won't be doomed when the Fed's massive stimulus program ends.

The ripest source of Wall Street chatter, investor anxiety and pundit prognostication these days is the impending end of the Federal Reserve's second "quantitative-easing" program on June 30. By then, the central bank will have bought $600 billion in Treasury securities to help fund the federal deficit and injectconjured money into the financial system. QE2, launched last autumn, follows what's now called QE1—when the bank soaked...